In Which of the Following Situations Does the Internalization Theory

Multiple Choice

In which of the following situations does the internalization theory recommend FDI as opposed to licensing?

A) When the firm has know-how that can be adequately protected by a licensing contract
B) When the firm produces products that have a low value-to-weight ratio
C) When a firm's skills and know-how are amenable to licensing
D) When the firm needs tight control over a foreign entity